BUSINESS STRATEGY

BUSINESS STRATEGY

Western’s objective is to generate growth in value for shareholders over the medium to long term and pay a progressive dividend. This will be achieved by identifying a limited number of good investment opportunities for growth in value.

The Company has successfully acquired, grown and exited businesses in a variety of industries including food production, manufacturing and real estate. Western has maintained a consistent business model that utilises the significant management and board level experience of its directors, as well as the meaningful financial resources to create long term value for the Company’s shareholders.

Our business model is to take sizeable minority stakes in relatively small companies (‘Core Holdings’), usually immediately before or as their shares are admitted to trading on one of the UK’s stock exchanges and to have directors in common through which we can provide each Core Holding with the benefit of substantial management and governance experience. These Core Holdings may or may not become associated companies. The aim is that these Core Holdings will grow to a stage at which our support is no longer required and our stake can then be sold over time into the relevant stock market.

Companies that are targeted as Core Holdings will have an experienced management team, a credible business model and also good prospects for growth. Core Holdings may be in any sector where management feels it has specific competence.

Our objective is not to build a diversified portfolio, but to identify a limited number of good opportunities for growth in value.

To acquire stakes in new Core Holdings, we need to be able to react quickly, and therefore to have readily available funds to invest. To achieve this, we maintain a Treasury Operation consisting of a mix of cash, debt facilities and liquid investments.